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afrol.com, 8 September - The African Development Fund (ADF) yesterday approved a loan of 7 million US$ and a US$ 1 million grant, totaling US$ 8 million to finance the small-scale irrigation project in Zambia. The objective of the project is to contribute to Gross Domestic Product growth (GDP) while achieving food security and poverty reduction in Zambia. It particularly seeks to increase food production and household income of the project’s target group in Sinazongwe and Mazabuka (Southern Province) and Chongwe (Lusaka Province). The project will involve the construction of small-scale irrigation schemes and the rehabilitation of existing schemes that will be self-managed in a decentralized and participatory manner. Village banks will be established for rural savings and credit. The project will also involve capacity building of the Ministry of Agriculture, Food and Fisheries staff and beneficiary farmers as well as environment and HIV/AIDS awareness training. The loan will be used to finance 86.5% of the foreign exchange costs and part of the local currency expenses of the project, the total cost of which is estimated at US$ 10.75 million. It is repayable in 50 years with a 10- year grace period. The ADB/ADF also finances a Water Supply and Sanitation Study in seven centers in Central Province (approved in November 1998) and a Health Sector Support Project (approved in July 1999) in Zambia.
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